ISLAMABAD 03 Sep 2024 (TDI): Brent oil prices fell in Asian trading because of reduction in demand as China’s economy weakens further following the blocking of oil production facilities in Libya.
Brent crude futures were down 37 cents, or 0.48 percent, at $77.15 a barrel by 0156 GMT. U.S West Texas Intermediate crude, which was closed for trading on Monday because of a U.S. holiday, was up 28 cents from Friday’s closing price of $73.55.
Warren Patterson of ING said that oil price remains under pressure amid concerns over demand China. Weaker than expected Purchasing Managers’ Index (PMI) data over the weekend did not ease those concerns.
China’s PMI hit a six-month low in August. China on Monday registered the first decline in new export orders in eight months in July, and said new home prices increase in August at their weakest pace this year.
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The United Nations Assistance Mission in Libya said it would hold a meeting on Monday to resolve a dispute over the management of Libya’s central bank. The supply blockage has caused oil production to fall to less than half normal levels. Rival factions finalized a draft agreement and planned to sign it on Tuesday, the UN said without sharing more details.
Libya’s National Oil Company (NOC) said on Monday it had declared force majeure at its El Feel field, cutting production by over 591,000 bpd from September 2. Production on July 20 was around 1.28 million bpd.
